New partners sink funds into Treasure Island housing projects

Despite the economic woes engulfing builders and developers nationwide, new investors agreed over the weekend to invest millions into San Francisco redevelopment projects at Treasure Island and Bayview Hunters Point.

Dallas-based developers Hillwood Development and California-based investment firm Scala Real Estate Partners will work in partnership with Lennar Corp, the lead developer on the projects, according to a press statement released by Lennar Tuesday.

Sam Singer, a San Francisco-based spokesman for Lennar, confirmed that as part of the deal, $145 million was paid to LNR Property Corp., to replace a 50 percent stake that organization had in the deal, as well as half of Lennar's 50 percent stake in Treasure Island, and half of Lennar's 100 percent stake in Candlestick Point.

The new consortium will also buy into a New Jersey redevelopment project overlooking the Hudson River, Lennar announced.

The announcement was lauded by Kheay Lok, who is overseeing the planned 6,000-home Treasure Island redevelopment effort for Wilson Meany Sullivan, which has a 50 percent stake in the project.

“Lennar, like other public builders, has been harmed by the credit mortgage crisis,” Lok said. “Now they have well-heeled partners investing in their project and additional sources of financing.”

The first homes on the already sparsely-populated island will be ready for new dwellers as soon as 2013, according to Lok.

The Treasure Island plan also includes 300 acres of public parks and a new ferry terminal.

The Hunters Point Shipyard-Candlestick Point mixed-use development project will include up to 10,000 homes, 2 million square feet of commercial space, 400 parks of open space and a possible new stadium for the San Francisco 49ers.

The City in 2007 required Lennar to secure investment partners to shore up financing for the projects, according to Michael Cohen, a senior official in Mayor Gavin Newsom's economic office.

Cohen described the new deal as a “terrific development” for San Francisco.

“What we've gotten here is just a deeper and more diversified pool of private capital,” Cohen said. “In a very tough real estate market, it's an affirmation not only the relative strength of the San Francisco market, but specifically the viability of our vision for the Hunters Point Shipyard and Candlestick Point.”

jupton@sfexaminer.com

Bay Area NewsLennarLocalTreasure Island

If you find our journalism valuable and relevant, please consider joining our Examiner membership program.
Find out more at www.sfexaminer.com/join/

Just Posted

Giants second baseman Donovan Solano scores on a double in the seventh inning against the Dodgers at Oracle Park on July 29. (Chris Victorio/Special to The Examiner)
Will the Giants make the playoffs? Kris Bryant may be the answer

By Chris Haft Special to The Examiner You’d be hard-pressed to find… Continue reading

Tiffany Carter, a co-founder of SF Black Wallstreet, at her restaurant, Boug Cali West Coast Creole Shack in the La Cocina Marketplace on Friday, July 30, 2021. (Kevin N. Hume/The Examiner)
SF Black Wallstreet: Helping residents build wealth, reclaim spaces they’ve had to leave

Tiffany Carter moved back to her hometown of San Francisco five years… Continue reading

A prescribed fire at Sequoia and Kings Canyon National Parks was conducted in June 2016 to reduce hazardous fuel loading, increase watershed health, and restore the natural fire cycle in the Redwood Canyon area ecosystem. (Photo courtesy Rebecca Paterson/National Park Service)
Experts, UC scientists discuss wildfires in the state’s riskiest regions

Wildfires are nothing new in California’s history, but the magnitude and frequencies… Continue reading

Fourth-grade students at Lucerne Valley Elementary School don masks and Western wear for a “Walk Through California” history day during in-person instruction. (Courtesy of Krystal Nelson)
Confusion over mask mandate for California schools sparks tension between districts and parents

By Diana Lambert EdSource Shifting rules around mask mandates at schools are… Continue reading

Steven Buss, left, and Sachin Agarwal, co-founders of Grow SF, a new group that aims to offer folks a moderate take on SF politics, on Friday, July 30, 2021. (Kevin N. Hume/The Examiner)
Grow SF: New tech group aims to promote moderate ideals to political newcomers

Sachin Agarwal has lived in San Francisco for 15 years. But the… Continue reading

Most Read